Intel Invests $600 Million In Wireless Provider Clearwire

At the same time, Motorola Inc. acquired Clearwire's NextNet Wireless subsidiary, a provider of OFDM-based, non-line-of-sight wireless broadband infrastructure equipment. NextNet's wireless access products are currently deployed by carriers on five continents.

As part of the transactions, Clearwire (Kirkland, Wash.) has obtained a total of $900 million in a private financing round. This includes the $600 million from Intel's venture capital arm, Intel Capital. The $600 million investment from Intel Capital is the largest in the organization's history.

The moves are aimed to accelerate the development and deployment of WiMAX in the marketplace. Clearwire, founded by communications guru Craig McCaw, is a provider of wireless, high-speed Internet services, based on WiMAX. Clearwire has launched wireless high-speed Internet service in 27 metro markets, covering more than 200 cities and towns.

"Collaborating with Intel and Motorola significantly advances our vision for fixed, portable and mobile wireless broadband services," said McCaw, founder, chairman, and co-CEO of Clearwire, in a statement. "Wireless broadband networks will enable the creation and delivery of differentiated services and applications that enhance the way people communicate and experience the Internet."

Following closing of the transactions, Motorola will supply wireless broadband equipment for Clearwire's existing and future networks. To speed up the proliferation of mobile WiMAX in PC clients, Intel will work to enable the inclusion of WiMAX chipsets in next generation mobile computing platforms. All three parties will contribute research and development resources to evolve NextNet Wireless' pre-WiMAX technologies.

"The size of this investment from Intel Capital underscores our commitment to supporting wireless broadband using WiMAX networks in the United States," said Intel Capital President Arvind Sodhani, in a statement. "Our collaboration with Clearwire and Motorola builds on the foundation of previous WiMAX network deployment investments made by Intel Capital throughout the world to bring the benefits of mobile high-speed and content-rich Internet access to wireless broadband users."

Intel and Clearwire are no strangers to each other. In 2004, the companies said they would jointly develop and deploy wireless broadband capabilities using WiMAX networks. The agreement also involved a significant investment in Clearwire from Intel (Santa Clara, Calif.).

Intel is making a huge push in WiMAX. Last week, Intel disclosed plans to deliver by year's end a new chipset called Rosedale 2 that should make it easier to access WiMAX from mobile computers.

Intel recently agreed to sell its handheld communications and application processor units to Marvell Technology, a storage, communications and chip developer, for $600 million.